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What: Shares of STEC
So what: Compared to the year-ago quarter, revenue fell 11%, pre-tax income fell 39%, and non-GAAP ("before bad stuff") EPS fell 31%. That said, after stumbling badly in the first half of 2010, results improved in the second half and growth expectations are high for the solid-state drive market the company serves.
Now what: Management noted the company is benefiting from a broader product lineup and expanded customer base. That could drive revenue and earnings growth in 2011. The consensus forecast calls for 18% EPS growth when easy comparables phase out in the second half. The stock appears reasonably valued at a forward P/E ratio of 17.8, though investors should consider the risks that uneven execution could continue and competition could heat up.
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Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.